Azera Trade In Value

[YeahRightNC]

I test drove the Genesis V6 over the weekend; really nice car, I was impressed with the ride, the handling and the quiet interior.

What I was not impressed with, was the value of my trade-in - I am waiting for the V8 version to be available here in Charlotte, NC. Currently driving a 2006 Azera Limited with the Ultimate package; 25,136 miles and in showroom condition, with the exception of a small scuff on the driver's seatback, and a very tiny (smaller than a pencil lead) chip on the rear bumper. I drove this car off the lot with 6 miles on it, and it's perfect - all service records, etc. How can a car that stickered at almost $32K be worth half of that at 3 years of age? I checked the trade-in value at kbb.com and I'll be lucky to get $16K on a trade, even given the condition and the mileage.

I needed to get closer to $20K to make the Genesis V8 possible... but a $4K delta is more cash than I want to part with.

Why is the trade-in/resale so low for this car? Is it still the Hyundai name? I thought about selling outright, but even looking online, they aren't going for much more than $17K.

Disappointing, really - I honestly thought that, with Hyundai's much-improved reputation and brand recognition, my car would have held value more than this. It honestly makes me afraid to buy a Genesis; if I needed to get rid of it for any reason (and in today's economy, it could happen), I'd be left so upside down that it would be impossible to sell it.

Any other members traded in an Azera? Just curious what kind of deal Hyundai is willing to make on a trade for these. I may just end up keeping it until it's paid off and then start again - only two years left on the loan.

Thanks,

Ken

 

[JOwest]

That is the reality of trade ins. Most cars lost half its value in about 3 years at trade in time. I had an Audi A6 which worth less than 50% after 3 years with only 22,000 miles on it.

 

[kbmuenkel]

With the exception of Hybrids and high MPG vehicles, the current market for pre-owned vehicles is much lower than what it was 12 to 24 months ago. The auctions have set these prices lower and lower, especially for gas guzzlers. Even manufacturers have walked away from leasing because the auction prices on turned-in vehicles have been much lower than the residuals calculated at the time of the lease.

I think you have a better chance negotiating a great price on your V8 Genesis than negotiating a high price on your Azera. Why not sell your Azera on the open market for the highest price you can get? With the way you have taken care of it and described its conditioin, it sounds like it will sell in a heart beat.

 

[gipp]

Figure that an Azera that stickered for 32K sold for 26K nationally and the 16K trade in offer after 3 years actually sounds pretty good.

 

[YEH]

Getting $16-17k on a 2006 Azera isn't bad right now (it might be hard to get that even) considering...

1. the Azera was never really advertised by Hyundai so little recognition of the model by the public;

2. large sedans aren't exactly in demand right now and the Azera only has fair gas mileage (and that's on the lower end);

3. the Azera has styling that doesn't appeal to everyone;

4. when calculating depreciation - really need to do it from actual purchase price and not MSRP (so figure around $27-28k instead of $32k).

The Genesis is predicted to have better retention of value than other cars in its class from luxury marks - while this is just an estimate, the used car values of the luxury marks have been getting hit hard (making leasing a much less attraction for Mercedes, BMW, Lexus, Infiniti, etc.).

 

[thomaspf]

That sounds about right. I was offered $17500 for my 3 year old Avalon which had 33000 miles and a scratch here and there.

I wanted to pay $40K for the V8 with tech package but they insisted on getting $42K.

In order to meet my offer they raised the trade in value for the Avalon to $19500. I did not care so took the deal.

Cheers

Thomas

 

[Duaine]

I test drove the Genesis V6 over the weekend; really nice car, I was impressed with the ride, the handling and the quiet interior.

What I was not impressed with, was the value of my trade-in - I am waiting for the V8 version to be available here in Charlotte, NC. Currently driving a 2006 Azera Limited with the Ultimate package; 25,136 miles and in showroom condition, with the exception of a small scuff on the driver's seatback, and a very tiny (smaller than a pencil lead) chip on the rear bumper. I drove this car off the lot with 6 miles on it, and it's perfect - all service records, etc. How can a car that stickered at almost $32K be worth half of that at 3 years of age? I checked the trade-in value at kbb.com and I'll be lucky to get $16K on a trade, even given the condition and the mileage.

I needed to get closer to $20K to make the Genesis V8 possible... but a $4K delta is more cash than I want to part with.

Why is the trade-in/resale so low for this car? Is it still the Hyundai name? I thought about selling outright, but even looking online, they aren't going for much more than $17K.

Disappointing, really - I honestly thought that, with Hyundai's much-improved reputation and brand recognition, my car would have held value more than this. It honestly makes me afraid to buy a Genesis; if I needed to get rid of it for any reason (and in today's economy, it could happen), I'd be left so upside down that it would be impossible to sell it.

Any other members traded in an Azera? Just curious what kind of deal Hyundai is willing to make on a trade for these. I may just end up keeping it until it's paid off and then start again - only two years left on the loan.

Thanks,

Ken

I thought the same thing when I traded my 2006 Azera Limited with Ultimate pkg. I had heard that their values dipped when they were made available to car rental companies.

 

[DanTheMan]

Any other members traded in an Azera? Just curious what kind of deal Hyundai is willing to make on a trade for these. I may just end up keeping it until it's paid off and then start again - only two years left on the loan.

I traded an '07 Azera on my Gen. I owed slightly over $15K on it--I'd purchased it used. The dealer's initial offer was for only $12K+ something. I balked and told the sales rep if that was all he would do, that I wouldn't waste any more of his time or mine. When I got up to leave, he asked what I would consider a 'reasonable' offer. I made a joke up about something overpriced/undervalued, then said that I wanted a trade offer equal to the payoff, and I would pay sticker price for the Gen (premium plus pkg). They had a bunch of add-on crap that I told him I wouldn't pay for under any circumstance. My Azera had been wrecked and just repaired (the repair shop (not the dealer) finished the repairs the previous day). I had been hit in my driveway at home by someone trying to steal another car (I live in a condo complex). The Azera had 26K miles on it, but was looking very good. It was a grey color.

I told the salesman early in the conversation that if the offer they might make wasn't to my liking, I would walk and call it a "window shopping" trip.

In a nutshell, they took my offer. I bought the first Gen in my area (East Tennessee), and I've been pleased with the purchase (V6, Premium Plus, Red Cabernet Pearl, black leather interior). I liked the Azera, but really enjoy this car better. Hyundai was offering .9% APR for 48 mos. in my area, so I took it. The whole process was pretty good. The sales guy was nice, the sales/finance mgmt team was pretty nice as well. They were slower than Christmas, but pretty nice overall. I would do business with them again, although I must say that I'd purchased the Azera from Carmax, and I liked their process considerably better. If they sold new Gens, I would have bought from them.

I agree w/a post noted in this thread that resale/trade values on most any car is less than what you and I would hope--especially if you buy the car new and take the initial depreciation (~20%). In some studies I'd done several years ago, I found the average make loses between 40-60% of it's value in the first two years--under those terms, your deal doesn't sound so bad. For me, I've decided some time back that buying a car based on what I might "expect" the resale value to be at some point in the future is really a waste of time. It's never what I would like, which is what I'd base any decision on anyway. Besides, I tend to drive a car until the wheels fall off (except for the Azera, which I traded earlier than usual). My average for the car when I'm "done" with it is between 250K-300K miles or up! Not much trade value there!

Dan